The latest trend in custom real estate investment seems to involve more than just your average annual rental property, but more so people are investing with vacation rentals in mind: specifically, Airbnb. In case you’ve been living under a rock for the last 5+ years, Airbnb was one of the first crowd sourcing solutions to over-priced hotel rooms in popular tourism areas where people decided to rent out vacant rooms in their homes as a Bed & Breakfast, and are now renting out entire homes/properties and more!
Currently in Memphis there are nearly 900 of these types of rentals actively available. Each property is ranging in size from anywhere between a studio apartment to a 5+ bedroom estate able to accommodate groups of up to 10 or more guests. On average, hosts are charging (and receiving) $121 per night depending on the size of their space, which makes the earning potential over $3,500 a month – needless to say that is much more than they would be getting out of an annual lease.
If you’re worried about leasing out your custom home to strangers who are not signing a long-term contract, don’t be afraid. According to Airbnb’s Host Guarantee Program, the “provide protection for up to $1,000,000 in damages to covered property in the rare event of guest damage, in eligible countries.” Thankfully the USA is one of those eligible countries.
Aside from the obvious monetary gain, another benefit to owning a custom Airbnb is ensuring better upkeep for your home. Because you’ll be renting it out so often, that means you’ll be cleaning it that much more often as well, and usually a good deep clean at that. Your guests will also find all the little “issues” and won’t hesitate to let you know about them. For example, that faulty light switch in the bathrom or that peeling paint in the kitchen won’t go unnoticed and you’ll be quick to fix it once it starts showing up on your reviews. Your house will be in tip-top shape, probably even better than the one you live in full time!
For those of you who are interested in reasons other than the money, you could also consider the cultural exchanges brought upon by owning a custom Airbnb in Memphis. Millions of travelers from all over the world are now using Airbnb in lieu of traditional hotel stays, which gives you, the owner, the opportunity to engage with people from all walks of life and all corners of the earth.